Making the Green Transition Work for People and the Economy 2025

2.2 Overcoming socioeconomic risks and competitiveness challenges linked to the green transition Using survey data collected through the World Economic Forum’s EOS, this section complements existing research and summarizes business views globally around the key socioeconomic risks and competitiveness challenges associated with the climate transition in their countries. Survey results are also analysed in conjunction with a set of 29 indicators that reflect pre-existing shared structural contexts that can influence the emergence of socioeconomic challenges and opportunities in countries. 33 Business concerns may be directly or indirectly influenced by the geopolitical, economic and social instabilities that are impacting today’s economy. When analysed in conjunction with indicators that reflect pre-existing structural socioeconomic contexts, analysing the sentiment of businesses can help surface key economic and institutional factors that might be associated with higher levels of concern. Figures 4 and 5 provide a summary of surveyed executives’ views regarding key challenges that they face to remain competitive in the green transition, as well as the key socioeconomic risks that they foresee in their countries as a result of the transition. In 2025, executives were asked to select up to three challenges that they face in staying competitive (Figure 4), while in 2024, they were asked to identify up to two “economic equity risks” that might stem from each of seven broad transition areas. 34 Figure 5 reports the share of executives that has identified each risk as relevant for at least one of the seven green transition areas in their country. Climate competitiveness challenges, by income group35FIGURE 4 Global average High income Upper middle income Lower middle income Low incomePercentage (%) of respondents0 10 20 30 40 50Higher cost of energy and key commodities Regulatory uncertainty and compliance burden Slow return on investmentLimited investment capacity and access to finance Organization culture and resistance to change Lack of reliable supply chains for sustainable products Affordability and demand for green products among consumers Limited access to green technologies Limited access to critical raw materials Limited access to green skills39% 28% 40% 47% 40% 39% 31% 32% 34% 31% 32% 23% 31% 38% 49% 22% 23% 24% 21% 17% 15% 19% 21% 27% 18% 16% 18% 12% 16% 21% 20% 12% 12% 20% 22% 11% 15% 20% 18%14% 16% 15% 15%17%19%22%37% 36% 32% 32% Source: World Economic Forum Executive Opinion Survey 2025. Making the Green Transition Work for People and the Economy 12